Key facts
- China's crude oil imports in June fell 41% year-on-year to 29.27 million tonnes.
- This volume represents the lowest monthly import figure since October 2016.
- The decrease is linked to China's economic slowdown and a build-up of crude stockpiles.
- China has increased its coal imports by 30%.
China's crude oil imports in June plummeted to their lowest level in a decade, a significant drop that has contributed to keeping energy prices contained despite escalating conflict between the United States and Iran in the Strait of Hormuz. Official customs data released on Tuesday revealed that crude imports reached 29.27 million tonnes, a 41 percent decrease year-on-year, marking the lowest volume recorded since October 2016. As the world's largest oil importer, China's reduced demand is a key factor influencing global energy prices. Experts attribute this pullback to a combination of China's severe economic slowdown and the nation's strategic decision to build up substantial crude oil stockpiles prior to the recent escalation of hostilities. In a notable shift, China has also increased its coal imports by 30 percent, indicating a substitution of energy sources. The ongoing conflict has seen Iran attacking vessels transiting the Strait of Hormuz, prompting the US to reimpose a blockade on Iranian ports. While oil prices have seen a modest rise to $79 per barrel from a low of $69, they remain relatively subdued, preventing a wider economic impact. US gasoline prices have also increased, reaching an average of $3.87 per gallon.